Options Radar: Kandi, NQ Mobile, and Time Warner Cable

Reviewing notable options activity on Kandi Technologies Group Inc, NQ Mobile Inc (ADR), and Time Warner Cable Inc

Digital Content Group
Nov 10, 2014 at 1:29 PM
facebook twitter linkedin


Three stocks seeing notable options activity today are China-based automaker Kandi Technologies Group Inc (NASDAQ:KNDI), Internet security specialist NQ Mobile Inc (ADR) (NYSE:NQ), and broadcasting titan Time Warner Cable Inc (NYSE:TWC). Here's a look at how today's options traders have been placing their bets on these three names.

  • Kandi Technologies Group Inc (NASDAQ:KNDI) has dropped 5.1% to hover near $16.23, following a poorly received earnings report. However, on a year-to-date basis, the stock remains nearly 38% higher. In the options pits, calls are trading at more than double the expected intraday rate, and the November 20 strike is the most active so far, with 1,050 contracts on the tape. It appears the majority of these calls are being sold to open, as speculators roll the dice on a short-term ceiling for KNDI. Looking back, the stock hasn't traded above $20 since late August.

  • NQ Mobile Inc (ADR) (NYSE:NQ) has spiked 4.6% to churn around $7.51, but remains nearly 49% south of breakeven since the start of the calendar year. In options land, traders are seeking out short-term strikes, per NQ's 30-day at-the-money (ATM) implied volatility (IV) -- up 2.2% at 109.3%. Digging deeper, the weekly 12/12 5.50-strike call is seeing buy-to-open activity, as each of the 600 contracts exchanged has done so on the ask side, IV has popped 42.5 percentage points to 154.3%, and open interest is nonexistent. In short, these in-the-money call buyers anticipate NQ will extend its lead over the $5.50 level through the close on Friday, Dec. 12 -- when the weekly series expires.

  • Time Warner Cable Inc (NYSE:TWC) has dropped 4.8% to trade at $136.70, as cable stocks feel the weight of President Barack Obama's pro-net neutrality comments from earlier. Elsewhere, total options volume is running at triple the typical intraday rate, and TWC's 30-day ATM IV has surged 34.2% to 36%, suggesting short-term strikes are seeing strong demand. Speaking of which, front-month options make up four of the five most active strikes, led by the November 150 call. Speculators appear to be largely selling to open these out-of-the-money calls, banking on a short-term layer of resistance that hasn't been topped since late September.
 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners